Growing political uncertainty in Europe, coupled with fresh evidence of economic weakness on the Continent, rattled global stock and bond investors Monday.
Major U.S. stock indexes fell more than 1%, following European markets lower as increasing political uncertainty in France and the Netherlands unnerved investors. Chris Dieterich has details on The News Hub. Photo: Reuters.
Stocks across the region plunged, dragging down U.S. shares. Investors fled debt of peripheral European nations—and even some core countries—for the safety of German bonds. Yields on 10-year bunds reached a record low and the Stoxx 600 index dropped 2.35%. The Dow Jones Industrial Average fell 102.09 points to 12927.17.
Amid the turmoil, traders noted the relative resilience of the euro, which finished Monday at $1.3158, down less than 0.5%. The currency's strength demonstrates that, at least for now, money is not flooding out of the euro zone, as it was late last year. Many investors have already slashed their investments in Europe, strategists and analysts said, reducing the likelihood of a mass exodus.
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